Graduate School of International Management
International University of Japan
MGT 1050
Strategic Management
Fall 2013
Instructor: Toshiro Wakayama
Teaching Assistant:
Office: 312
Phone: x427
Office Hours: After class or by appointment
Email: wakayama@iuj.ac.jp
Diwaker (Walker) Bandanwal
Email: diwakerb@iuj.ac.jp
Motivation: The challenge and the dilemma of strategic management
What is strategy? The answer to this question varies among different schools of strategy studies.
However, it is generally agreed that the firm’s strategy, as a whole, is essentially of an integrative
nature and does not break into parts that can be separately addressed. Yet, in an individual
managerial situation, the manager must focus on the specific strategic theme of the situation as if it
were a separable part of the whole strategy. How does the manager comprehend the whole of the
strategy if it is not a collection of parts? How does the manager successfully complete a specific
strategic task if it is an inseparable part of the whole? Clearly, the dilemma to manage here is to
maintain the undisturbed focus on the part while developing a broader picture of the whole.
Learning Objectives
This course is an introduction on the fundamentals of strategic management. It introduces the basic
tools, concepts and frameworks useful in conceiving a firm’s strategy as an irreducible whole.
Throughout the course, the essential task of students is to develop the ability to take an integrative
perspective when making a decision in a specific business situation.
Important Note
This course serves as a critical prerequisite to advanced strategy courses in subsequent terms, such
as Global Strategy in the winter term and Innovation and New Business Creation in the spring term.
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Required Materials
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Textbook:
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Contemporary Strategy Analysis, 8th Edition, R. Grant, Wiley, 2013.
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Articles:
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What is Strategy? M. Porter, Harvard Business Review, November-December 1996.
Harvard Business Review articles are available through MLIC Online Databases.
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Cases
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Cola Wars Continue: Coke and Pepsi in 2010, 711462-PDF-NG, Harvard Business
School, May 2011 (revised).
Delta Air Lines (A): The Low-Cost Carrier Threat, 704403-PDF-ENG, Harvard Business
School, January 2005 (revised).
Matching Dell, 799158-PDF-ENG, Harvard Business School, June 1999.
Strategic Planning at United Parcel Service, 306002-PDF-ENG, Harvard Business
School, June 2006 (revised)
Samsung Electronics: Managing Innovation in an Economic Downturn,
HK1007-PDF-ENG, University of Hong Kong, July 2013
Arauco (A): Forward Integration or Horizontal Expansion? 705474-PDF-ENG, Harvard
Business School, March 2009 (revised).
P&G Japan: The SK-II Globalization Project, 303003-PDF-ENG, Harvard Business
School, March 2004 (revised).
Google Inc., 910036-PDF-ENG, Harvard Business School, April 2011 (revised).
References (not required, reserved at MLIC)
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Economics of Strategy,6th Edition, D. Besanko, et al., John Willey & Sons, 2012
Grading
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Final Exam (Case Analysis): 30%
Case Memos (Group): 30%
Peer Evaluation: 20%
Class Participation: 20%
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Weekly Agenda
Week 1 Introduction
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Course Overview
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What is Strategy?
Readings:
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What is Strategy? M. Porter, Harvard Business Review
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CSA1
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A Brief History of Business Strategy (12~15)
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Strategy Today (15~21)
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How is Strategy Made? The Strategy Process (21~24)
Week 2 Analysis of the External Environment
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Industry Structure: Five Forces Analysis
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Industry Dynamics
Readings:
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CSA
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Analyzing Industry Attractiveness (62~73)
Case:
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Cola Wars Continue: Coke and Pepsi in 2010.
Week 3 Analysis of Internal Capabilities
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Resources and Capabilities
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Value Chain
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Systemic View of Capabilities
Readings:
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CSA
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The Role of Resources and Capabilities in Strategy Formulation (112~116)
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Identifying Resources and Capabilities (116~126)
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Appraising Resources and Capabilities (126~131)
Case:
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Delta Air Lines (A): The Low-Cost Carrier Threat
Week 4 Sources of Competitive Advantage
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Cost Advantage
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Differentiation Advantage
Readings:
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CSA
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Types of Competitive Advantage: Cost and Differentiation (177~179)
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Cost Analysis (179~188)
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Differentiation Analysis (188~198)
Case:
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Matching Dell
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Course Textbook: Contemporary Strategy Analysis, 8th edition, 2013. For each reading assignment, read
the designated sections in the CSA textbook (pages in parentheses). You may skip “Strategy Capsules” in
assigned sections.
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Week 5 Strategy Process
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Planning Process
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Emergent Strategy
Readings:
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CSA
 From Strategy to Execution (143~147)
 Using Scenarios to Prepare for the Future (228~228)
Case:
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Strategic Planning at United Parcel Service
Week 6 Capabilities for Recreating Sources of Competitive Advantage
 Dynamic Capabilities
Readings:
 CSA
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Dynamic Capabilities (227~231)
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Developing New Capabilities (231~234)
Case:
 Samsung Electronics: Managing Innovation in an Economic Downturn
Week 7 Vertical Integration (Vertical Scope)
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Transaction Costs
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Costs of Internalization
Readings:
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CSA
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Transaction Costs and the Scope of the Firm (297~300)
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The Benefits and Costs of Vertical Integration (300~306)
Case:
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Arauco (A): Forward Integration or Horizontal Expansion?
Week 8 Multinational Strategies (Geographical Scope)
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National Diamond Framework
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Global Efficiency
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Local Responsiveness
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Worldwide Innovation and Learning
Readings:
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CSA
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Analyzing Competitive Advantage in an International Context (319~322)
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Applying the Framework: International Location of Production (322~326)
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Applying the Framework: Foreign Entry Strategies (326~328)
Case:
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P&G Japan: The SK-II Globalization Project
Week 9 Diversification (Product Scope)
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Motives for Diversification: Growth, Risk Reduction, Profitability
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Competitive Advantage from Diversification: Economies of Scope, Economies from
Internalizing Transactions, etc
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Related and Unrelated Diversification
Readings:
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CSA
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Motives for Diversification (350~352)
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Competitive Advantage from Diversification (353~357)
Case:
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Google Inc.
Week 10 Wrap-up
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Guest Speaker (Possibly scheduled on a different date)
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Course Wrap-up (Case questions for Final Exam to be announced)
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